Cost and Management Accountancy Syllabus - BHM (TU)

Course Objectives:

The objectives of the course are to provide the students with in-depth knowledge of cost and management accounting tools and techniques in order to enable them to develop arrange and classify cost information of Hospitality Industry required for decision making for maximizing the profit and reducing losses.

Course Description:

This course aims to provide detail knowledge on cost ascertainment, classification, controlling and estimation of cost required for managerial planning and decision making. It covers cost management, income under managerial and absorption costing, cost volume profit analysis, price determination, long term expenditure planning, budgeting and Decision making under different situation..

Course Details

Unit 1: Fundamentals of Cost and Management Accounting                                                                                                                           LH 3 Concept, Meaning and branches of accounting, Limitations of financial accounting, Meaning of Cost accounting and management accounting, Objectives of Cost and management Accounting, Difference between cost and management accounting, Limitations of cost and management accounting.

Unit 2: Cost concept, Classification & Estimation                                                                                                                           LH 6 Meaning of cost and costing, Meaning of Menu costing, Meaning of Accommodations costing, Classification of costs, Segregation and Estimation: High Low Method, Least square method, Flexible Budget.

Unit 3: Cost Volume Profit Analysis                                                                                     LH 6

Introduction and important of cost volume profit analysis, Assumption of cost volume profit analysis, Contribution margin analysis, Break even analysis: Formula approach, Graphical approach..

Unit 4: Income Recognition                                                                                                  LH 5

Absorption costing method, Ariable costing method.

Unit 5: Price Determination in the Hospitality Industry                                                                                                                           LH 4 Methods of pricing: Cost plus pricing method, Gross profit or gross margin method, Pricing hotel accommodation, Pricing food and beverage.

Unit 6: Budgeting for Planning and Control                                                                                                                           LH 6 Planning and budgeting, Purpose and functions of budgeting, Sales revenue budget, Production budget. Operating expenses budget, Cash budget.

Unit 7: Capital Investments decision                                                                                     LH 8

Concept, Cash flow and profit and loss account, Steps of capital investment Decision: a. Cash flow Estimation, Net cash outlay (NCO), Cash flows after tax (CFAT), b) Evaluation (Different Methods).

Unit 8: Decision regarding alternative choices in the Hospitality Industry                                                                                                                           LH 10 Concept of Decision Making, Opportunity cost, sunk cost, Relevant cost and Irrelevant cost, Make or buy decision, Drop or continue decision, Accept or reject order decision, Decision for continue or closure in off season, Leasing Vs Purchase decision.

References:

Lynch & Williamson, Accounting for Management Planning & Control, Tata McGraw Hill Co. Garrison, R.H. & Noreen, E.W., Managerial Accounting, McGraw-Hill Companies, Inc.

Lucy, T., Cost Accounting, Tata McGraw Hill Co., New Delhi.

Dangol, R.M. and et.al, Cost and Management Accounting, Taleju Publishing House, Kathmandu Koirala, M.R. and et.al, Cost and Management Accounting, Buddha Academy Publication House, Koirala, Y.R. and et.al, Cost and Management Accounting, Ashmita Publication, Kathmandu.

Munankarmi, S.P. and Shrestha, B.P., Cost and Management Accounting, Samjhana Publication House, Kathmandu.